Articles from St. Petersburg Bankruptcy Law Blog

If you are a California resident who is struggling financially due to unemployment, it may be time to consider filing for bankruptcy, which can help you get a fresh start by reducing or eliminating many of the debts that you owe. However, while unemployment may help you qualify for certain types of bankruptcy, lacking a job could prevent you from choosing others. Continue reading to learn more about how job loss and unemployment could affect your ability to file bankruptcy in California.

Debt consolidation is a finance strategy which entails taking all a debtor’s debts, especially high-interest debts, and melding them together into a single monthly payment with preferably a lower interest rate. This may seem like a dream come true for any individual struggling with their finances, but there are still some issues to consider before deciding debt consolidation is best for you. Depending on the circumstances, filing bankruptcy in California may be a more useful approach.

Filing for bankruptcy can discharge (wipe out) various forms of debt, or reorganize the debt into a more manageable payment plan. However, some types of debt cannot be discharged in bankruptcy. For example, in California, filing for bankruptcy will not halt child support payments. However, filing for Chapter 13 bankruptcy in Roseville may allow a parent to get their child support payments into a more practicable repayment plan.

Bankruptcy may be the best choice for people or businesses who can no longer afford to pay their debts. Bankruptcy allows people to obtain a clean slate by liquidating their assets to pay off debts, or by creating a repayment plan to reorganize and settle their debts. Bankruptcy proceedings are initiated when the debtor files a petition with the bankruptcy court. A petition can be filed by an individual, by spouses jointly, or by a corporation or other entity.